Here are the most important news, trends and analysis that investors need to start their trading day:
1. Oil rebounds as Russian-Ukrainian talks falter, sending stock futures tumbling
Traders at the NYSE, March 8, 2022.
US stock futures fell sharply on Thursday. US oil prices rebounded 4% in morning trade as the latest round of talks between Russia and Ukraine broke down with no progress on a ceasefire and no progress on safe passages for the evacuation of civilians. With oil and gasoline prices rising, investors are digesting another searing inflation report. Amazon stood out in a falling premarket, jumping 4% after its post-bell announcement of a 20-for-1 stock split and $10 billion buyout. Bitcoin fell below $40,000 on Thursday as some of the initial excitement surrounding President Joe Biden’s executive order on digital assets faded.
2. The pressure on stocks comes after the S&P 500’s best day in about 21 months
Wall Street, which is expected to open lower on Thursday, snapped a four-game losing streak on Wednesday as the S&P 500 jumped 2.5% on its best day since June 2020, but remained in correction. The Nasdaq jumped almost 3.6% and the Dow Jones Industrial Average 2%. These gains pulled the Dow out of a correction and the Nasdaq out of a bear market. Oil prices fell sharply on Wednesday afternoon, giving stocks an additional boost. West Texas Intermediate crude, the US benchmark, fell more than 12%.
3. Bond yields rise after warmer inflation data
The 10-year Treasury yield rose Thursday to around 1.96% after February’s consumer price index rose 7.9% over the past 12 months, a new 40-year high and slightly higher than estimated.
- The latest readings on wholesale inflation and retail sales are released Tuesday and Wednesday – the two days the Federal Reserve holds its March policy meeting. Central bankers are expected to start raising Covid-era near-zero interest rates next week, the first in a series of rate hikes seen this year to fight inflation.
4. Russia bombs a maternity ward in Ukraine, killing 3 people
A car burns after the destruction of the Mariupol Children’s Hospital as the Russian invasion of Ukraine continues, in Mariupol, Ukraine March 9, 2022 in this still image from video obtained by Reuters.
Ukrainian Military | via Reuters
Thursday’s collapse of ceasefire talks came a day after Russian forces shelled a maternity hospital in the Ukrainian town of Mariupol, killing three people, including a child. Russian Foreign Minister Sergei Lavrov said on Thursday without evidence that the hospital had already been captured by Ukrainian “ultra-radicals”. Ukrainian Foreign Minister Dmytro Kuleba said Russian officials were “living in their own reality”.
- US Vice President Kamala Harris will meet Polish leaders in Warsaw on Thursday as disagreements simmer over how to arm Ukraine with warplanes to fight off the Russian invasion. Ukrainian President Volodymyr Zelenskyy has pleaded for NATO to impose a no-fly zone or provide him with fighter jets.
5. Amazon’s 20-to-1 stock split fuels speculation over Dow-30 inclusion
Getty Images; Chris Ratcliff | Bloomberg | Getty Images
Mega-cap tech stocks Amazon and Google’s parent company Alphabet are losing mega stock prices with huge splits, fueling speculation over whether they could one day be among the 30 constituents that make up the Dow Jones. Alphabet first came in February with its 20-to-1 stock split. Then late Wednesday it was Amazon’s 20-to-1 stock split. Apple was added to the Dow Jones in March 2015, nine months after achieving a 7-to-1 split. Apple achieved another 4-to-1 split in 2020.
— The Associated Press and Reuters contributed to this report. Register now for the CNBC Investing Club Follow all of Jim Cramer’s stock moves. Follow the evolution of the market like a pro on CNBC Pro.